For UPS
For UPS
For UPS
Jeremy Gogel
3-2-2006
Finance 4201
Stock Profile
Last Trade:74.71
Day's Range:74.63 - 75.9152
Wk Range:66.10 - 79.97
Volume:2,858,600
Avg Vol (3m):2,577,950
Market Cap:82.45B
P/E (ttm):21.54
EPS (ttm):3.47
International Services
UPS Worldwide ExpressSM
UPS Worldwide Express PlusSM
UPS Worldwide ExpressSM NA1
UPS Express Saver
UPS WorldEaseSM
UPS Worldwide ExpeditedSM
UPS Standard
Domestic Segment
Ground volume increased 4 percent (408,000 packages) per day.
Revenue per piece was up 2.1 percent
New technology had a negative impact on profitability of about $150
million
Growth is focused on better alignment of resources, cross-selling of
integrated solutions and expansion of the product portfolio
International Segment
International operations achieved large gains in 2004
Favorable currency translation accounted for only $54
million of the $412 million increase in profits
Operating profit was over $1 billion for the first time and
Operating margins increased to 16.6%; best in industry
10
Growth Opportunities
UPS invests hundreds of millions of dollars annually for facilities, vehicles, and aircraft.
Construction continued on the expansion of the companys automated air hub in Cologne,
Germany the largest hub outside the United States.
UPS is extending its presence in Asia. UPS has gained 12 additional air routes to more
extensively serve parts of China, Japan, and Hong Kong.
Network improvements reduced transit times by one day on ground service between 20
metropolitan areas, including Atlanta, Baltimore/Washington, D.C., Chicago, Dallas,
Houston, Kansas City, Los Angeles, Philadelphia, and Pittsburgh.
UPS will continue enhancing transit times in 2005 and beyond.
11
UPS
USPS
FDX
Deutsche Post
Industry
83.12B
N/A
33.56B
N/A
1.19B
N/A
346,410
215,838
704,716
3.21K
Qtrly Rev
Growth (yoy):
21.50%
N/A
10.30%
N/A
18.80%
Revenue (ttm):
42.58B
60.74B
30.85B
69.91B
1.53B
100.00%
N/A
67.17%
N/A
32.11%
7.76B
N/A
4.17B
N/A
111.30M
14.43%
N/A
8.67%
N/A
5.85%
Net Income
(ttm):
3.87B
2.17B
1.58B
1.45B
16.66M
EPS (ttm):
3.468
N/A
5.114
N/A
0.83
P/E (ttm):
21.72
N/A
21.59
N/A
23.8
PEG (5 yr
expected):
1.36
N/A
1.18
N/A
1.47
P/S (ttm):
1.95
N/A
1.09
N/A
0.64
Market Cap:
Employees:
Gross Margin
(ttm):
EBITDA (ttm):
Oper Margins
(ttm):
12
Valuation
Beta: .49
Growth Rate: 7% (I think this is low)
Rate of Return: 8%
Value: $100 per share
14
Recommendation
Hold
Why?
I really like the dividend;
its increased by 81% since 2003.
I think UPS can capitalize on the
increasing supply chain market.
Very little risk, but still room for
growth.
15
Questions?
16